CALCULATION OF EARNINGS PER SHARE

We have authorized 17,000,000 shares of common stock and 3,000,000 shares of Class B common stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends.

In accordance with ASC 260-10, Earnings Per Share (“ASC 260”), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends.

The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income (loss) are based on the following amounts (in thousands, except per share amounts):



	For the Three Months Ended
	November 29, 2014						November 30, 2013
	Basic			Diluted			Basic			Diluted

Numerator for Basic and Diluted EPS:
Income (loss) from continuing operations	$	(1,144	)	$	(1,144	)	$	631		$	631
Less dividends:
Common stock	701			701			710			710
Class B common stock	116			116			118			118
Undistributed losses	$	(1,961	)	$	(1,961	)	$	(197	)	$	(197	)
Common stock undistributed losses	$	(1,685	)	$	(1,685	)	$	(169	)	$	(169	)
Class B common stock undistributed losses	(276		)	(276		)	(28		)	(28		)
Total undistributed losses	$	(1,961	)	$	(1,961	)	$	(197	)	$	(197	)
Income (loss) from discontinued operations	$	87		$	87		$	(107	)	$	(107	)
Less dividends:
Common stock	701			701			710			710
Class B common stock	116			116			118			118
Undistributed losses	$	(730	)	$	(730	)	$	(935	)	$	(935	)
Common stock undistributed losses	$	(627	)	$	(627	)	$	(802	)	$	(803	)
Class B common stock undistributed losses	(103		)	(103		)	(133		)	(132		)
Total undistributed losses	$	(730	)	$	(730	)	$	(935	)	$	(935	)
Net income (loss)	$	(1,057	)	$	(1,057	)	$	524		$	524
Less dividends:
Common stock	701			701			710			710
Class B common stock	116			116			118			118
Undistributed losses	$	(1,874	)	$	(1,874	)	$	(304	)	$	(304	)
Common stock undistributed losses	$	(1,610	)	$	(1,610	)	$	(261	)	$	(261	)
Class B common stock undistributed losses	(264		)	(264		)	(43		)	(43		)
Total undistributed losses	$	(1,874	)	$	(1,874	)	$	(304	)	$	(304	)
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,770			11,770			11,871			11,871
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,141			2,141			2,191			2,191
Effect of dilutive stock options				—						123
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				13,911						14,185
Income (loss) from continuing operations per share:
Common stock	$	(0.08	)	$	(0.08	)	$	0.05		$	0.04
Class B common stock	$	(0.07	)	$	(0.07	)	$	0.04		$	0.04
Income (loss) from discontinued operations per share:
Common stock	$	0.01		$	0.01		$	(0.01	)	$	(0.01	)
Class B common stock	$	0.01		$	0.01		$	(0.01	)	$	(0.01	)
Net income (loss) per share:
Common stock	$	(0.07	)	$	(0.07	)	$	0.04		$	0.03
Class B common stock	$	(0.06	)	$	(0.06	)	$	0.03		$	0.03

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2015 and fiscal 2014 were 666,564 and 512,064, respectively.



	Six Months Ended
	November 29, 2014						November 30, 2013
	Basic			Diluted			Basic			Diluted

Numerator for Basic and Diluted EPS:
Income (loss) from continuing operations	$	(1,227	)	$	(1,227	)	$	2,610		$	2,610
Less dividends:
Common stock	1,411			1,411			1,433			1,433
Class B common stock	234			234			252			252
Undistributed earnings (losses)	$	(2,872	)	$	(2,872	)	$	925		$	925
Common stock undistributed earnings (losses)	$	(2,466	)	$	(2,466	)	$	788		$	790
Class B common stock undistributed earnings (losses)	(406		)	(406		)	137			135
Total undistributed earnings (losses)	$	(2,872	)	$	(2,872	)	$	925		$	925
Income (loss) from discontinued operations	$	87		$	87		$	(118	)	$	(118	)
Less dividends:
Common stock	1,411			1,411			1,433			1,433
Class B common stock	234			234			252			252
Undistributed losses	$	(1,558	)	$	(1,558	)	$	(1,803	)	$	(1,803	)
Common stock undistributed losses	$	(1,337	)	$	(1,337	)	$	(1,537	)	$	(1,539	)
Class B common stock undistributed losses	(221		)	(221		)	(266		)	(264		)
Total undistributed losses	$	(1,558	)	$	(1,558	)	$	(1,803	)	$	(1,803	)
Net income (loss)	$	(1,140	)	$	(1,140	)	$	2,492		$	2,492
Less dividends:
Common stock	1,411			1,411			1,433			1,433
Class B common stock	234			234			252			252
Undistributed earnings (losses)	$	(2,785	)	$	(2,785	)	$	807		$	807
Common stock undistributed earnings (losses)	$	(2,391	)	$	(2,391	)	$	688		$	689
Class B common stock undistributed earnings (losses)	(394		)	(394		)	119			118
Total undistributed earnings (losses)	$	(2,785	)	$	(2,785	)	$	807		$	807
Denominator for basic and diluted EPS:
Common stock weighted average shares	11,797			11,797			11,997			11,997
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS	2,161			2,161			2,309			2,309
Effect of dilutive securities Dilutive stock options				—						127
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				13,958						14,433
Income (loss) from continuing operations per share:
Common stock	$	(0.09	)	$	(0.09	)	$	0.19		$	0.18
Class B common stock	$	(0.08	)	$	(0.08	)	$	0.17		$	0.17
Income (loss) from discontinued operations per share:
Common stock	$	0.01		$	0.01		$	(0.01	)	$	(0.01	)
Class B common stock	$	0.01		$	0.01		$	(0.01	)	$	(0.01	)
Net income (loss) per share:
Common stock	$	(0.08	)	$	(0.08	)	$	0.18		$	0.17
Class B common stock	$	(0.07	)	$	(0.07	)	$	0.16		$	0.16

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2015 and fiscal 2014 were 661,564 and 487,064, respectively.